Himachal Pradesh to give 2 controversy-hit power projects to Brakel Corporation

Reversing its earlier position, Himachal Pradesh has informed the Supreme Court that it would give 960 MW Jangi-Thopan and Thopan Powari power projects to Brakel Corporation and rejected the allegation of "unfairness" levelled by Anil Ambani group firm Reliance Infrastructure.

In an affidavit filed before the apex court this week, the state government said that it would not cancel the allotment made in favour of the Netherlands-based Brakel Corp, which has business association with Adani Group, contrary to its earlier order in October 2009 cancelling the allotment and imposing penalty of Rs 280 for delay in the project.

The state government has also denied the allegations of the Anil Ambani group firm that there was unfairness, arbitrariness and illegality" while awarding the project to the Netherlands-based firm, the highest bidder.

ADAG group firm was the second highest bidder for the two hydro projects coming up on the Sutlej river in Kinnaur district.

"All the allegations of unfairness, arbitrariness and illegality made against the state are baseless and deserved to be rejected straightway. All the decisions in the matter have been taken by the council of ministers and after considering the report of the committee of secretaries," said the state government in its 10-page affidavit.

"Even the committee after considering the relevant records has not come across any incriminating documents/information which may prima facie indicate the commission of any criminal act by Brakel," the state government further said over the allegation of ADAG group firm that Brakel was a shoddy firm.

Over the allegations of receiving funds from the Adani group for the project, the state government said that there was nothing wrong in it.

"In so far as the allegation regarding receiving the funds from Adani group by way of loan is concerned, Brakel has disclosed the details to the state government immediately on enquiry. Borrowing of money by an allottee is not prohibited under the bid document.

"Brakel has clarified that they have not allotted or transferred any equity to Adani nor will its do so without the permission of the state government and it was found satisfactory," the state government said.

Earlier on October 22, 2009, following the orders of the Shimla High Court, the state government had cancelled the allotment to Brakel and imposed a penalty of Rs 280 crore for delaying the project.